Cloud FinOps, 2nd Edition

Chapter 9. The FinOps Lifecycle

Back in Chapter 1, we discussed the core principles of FinOps. The principles are great to help guide actions, and in Chapter 7 we discussed the FinOps Framework, which was built on those principles. This chapter covers the ongoing, iterative phases of the FinOps lifecycle and how to apply them to the capabilities of FinOps. The principles haven’t changed much since the first edition of this book. But we have seen a lot of different companies and organizations begin to build and iterate on top of them, making them their own. Much like the FinOps Framework, which is a set of building blocks meant to be assembled in various ways relevant to your organization, the principles are also open source bedrocks for you to assemble and build a FinOps plan for your organization.

The Six Principles of FinOps

Again, the principles are as follows:

• Teams need to collaborate.

• Decisions are driven by the business value of cloud.

• Everyone takes ownership of their cloud usage.

• FinOps reports should be accessible and timely.

• A centralized team drives FinOps.

• Take advantage of the variable cost model of the cloud.

Let’s look at how each principle plays out in action with real-world ramifications, and later we’ll dig into how specific framework capabilities are designed to leverage them to achieve specific results.

#1: Teams Need to Collaborate

First and foremost, FinOps is a cultural change that focuses on breaking down the silos between teams that historically haven’t ...